HI HB1656

Requires disbursing officers to provide employees with written notice at least 30 calendar days before deducting overpayments from their wages, including the total amount owed and deduction amount.

Limits wage deductions for recovering employee indebtedness to the state to no more than 5% of gross income per pay period, unless the employee requests a higher deduction amount.

Removes the previous immediate recovery provisions that allowed deductions of up to one-quarter of wages or minimum $100 per pay period for debts over $1,000.

Preserves the option for employees and appointing authorities to offset remaining debt by applying leave or compensatory time credits that would otherwise be paid out upon separation.

Effective date set for July 1, 3000 (placeholder date).